Northern Star records steady growth

Northern Star Resources recorded a slight increase in gold production for the December quarter and remains on track to meet its 2023 target, the company has reported.

The Perth-based gold miner's shares were up 0.42 per cent to $12.09 after its Kalgoorlie, Yandal and Alaskan project Pogo’s operations produced a total 404,287 ounces of gold for the quarter.

Northern Star produced 392,655 ounces of gold in the 2021 December quarter, representing an increase of 11,632 ounces on 2022. 

Its guidance between 1.55 million ounces and 1.65 million ounces for 2022 will be upped to between 1.56 million and 1.68 million ounces for the 2023 financial year.

The Yandal and Pogo operations produced more gold than the previous year, while the Kalgoorlie projects recorded a drop from 244,915 ounces of gold in the 2021 December quarter to 210,361 ounces of gold in the 2022 December quarter. 

The state's largest gold miner's all-in sustaining costs came in at $A1,746 per ounce, with the 2023 guidance of $1,630 to $1,690 maintained. 

The company spent $32 million on exploration during the fourth quarter, with its 2023 exploration guidance set to $125 million for the year.

According to the report, performances were “in line with expectations while all three production centres initiated steps to sustainably address the higher-cost operating environment.”

Northern Star managing director Stuart Tonkin said all three production centres achieved positive net mine cash flow after funding their capital requirements.

He said the company remained on track to deliver their 2023 financial year guidance.

“We are making exceptional progress at key growth projects that will drive costs lower and, in turn, build cash to maintain a strong financial position,” Mr Tonkin said.

“Our largest asset, KCGM, remains in very good shape while the expected lift in group production in the second half will be driven by the recently expanded mill at Thunderbox, part of the Yandal hub, and further improvement at Pogo.

“In parallel, we are building good momentum in the journey to cut our carbon emissions by 35 per cent by 2030.”

Northern Star Resources shares were up 0.42 per cent to trade at $12.09 at 2:25 pm AEDT.